To all:
I just found this Press release:
DCI Telecommunications, Inc. Announces Record Breaking Year
STRATFORD, Conn., June 29 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC Bulletin Board: DCTC - news) today announced its results for the fiscal year ended March 31, 1999.
Consolidated revenues for the 12 months ended March 31, 1999 totaled $34.1 million, which is more than seven times reported revenues of $4.5 million for the comparable period ended March 31, 1998. Loss from operations, before other expenses, was $6.7 million, versus a $2.3 million loss for the same prior-year period. The total loss, including other expenses and discontinued operations, was $12.8 million, versus net income of $116,000 a year ago. Current and prior-year audited results have been restated in accordance with generally accepted accounting principles.
The past year was spent adding to the company's growth potential and clearing out unprofitable business segments, all of which will serve to streamline operations and enhance the prospects for future profitability, according to Joseph J. Murphy, DCI president and CEO.
Murphy stated: ''The results are as expected considering the company wrote off $4.7 million in expenses relating to the dispositions of the CyberFax and Canadian operations and, at the same time, recognized no income from the $5.0 million sale of CyberFax. The latter was deferred until the note is paid off. The company also wrote off close to $3 million in bad debt, including a $650,000 receivable from SMARTALK Teleservices Inc., which filed for bankruptcy in the fiscal year, and incurred $1.6 million in amortization and depreciation. DCI also incurred $1.2 million in professional and consultation fees, which pertained to litigation and regulatory compliance.''
DCI said the year was highlighted by the recent opening of its new facility in Madrid, Spain, the leasing of new switching equipment from Harris Corporation and the formation of several alliances, including but not limited to Retevision, the national cable company in Spain. The agreement with Retevision, which enables DCI to achieve CLEC status throughout Spain, also allows DCI to serve as an Internet service provider in Spain. DCI's access to Retevision's cable and wireless microwave transmission facilities will form the Spanish segment of the company's planned Pan-European Internet-based voice and data transmission network.
Subsequent to year end, a trading suspension was placed on DCI's stock due to Securities & Exchange Commission concerns over acquisition accounting using the pooling of interests method rather than the purchase method of accounting. The company moved rapidly to restate its prior 1O-Qs and is working closely with market makers to file the prerequisite forms necessary for the resumption of trading on the OTC Bulletin Board. In addition, DCI named Deloitte & Touche as its new independent accountants. ''I believe filing the audited statements on Edgar will have a beneficial effect on the market makers in filing the proper forms,'' said Mr. Murphy.
The company also announced that it has agreed to terminate a February 1999 stock exchange agreement with Wavetech International, Inc. (OTC Bulletin Board: ITEL - news). As part of that termination, both companies agree to return the common stock that had been exchanged. The decision to terminate the agreement and undo the stock swap follows the termination of a merger agreement between DCI and Wavetech, thus ending all business agreements between the two companies.
DCI previously announced that the company has been reorganized into two groups, for improved operational control. ''The company continues to review strategies, including the possible creation of two separate publicly traded companies, in order to improve shareholder value. We are committed to the objective of justifying the investment our shareholders have made in DCI,'' said Murphy.
DCI Telecommunications is a global provider of telecommunications services, including long distance, prepaid phone cards and Internet services. It has an extensive distribution network throughout North America and Europe. The company owns and operates switching facilities in the United Kingdom, Spain and Denmark, with facilities planned for the United States in the near future. Additional information can be obtained directly from the company or its web site at dcic.com.
Safe Harbor Statement under the Private Securities Litigation Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including, but not limited to, risks associated with the new uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.
SOURCE: DCI Telecommunications, Inc.
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